Sirius XM(SIRI) - 2025 Q2 - Quarterly Results

Executive Summary & Q2 2025 Financial Highlights Overall Financial Performance SiriusXM's Q2 2025 revenue decreased 2% to $2.14 billion, net income fell to $205 million, and Adjusted EBITDA declined 5% to $668 million | Metric | Q2 2025 | Q2 2024 | Change (%) | | :----------------------- | :-------- | :-------- | :--------- | | Revenue | $2.14 billion | $2.18 billion | -2% | | Net Income | $205 million | $354 million | -42% | | Diluted EPS | $0.57 | $0.74 | -23% | | Adjusted EBITDA | $668 million | $702 million | -5% | | Adjusted EBITDA Margin | 31% | - | - | Management Commentary Management highlighted subscriber improvements, new content, podcast growth, cost efficiencies, disciplined financial control, and strong free cash flow - CEO noted meaningful year-over-year subscriber improvements, new content agreements, accelerated podcasting momentum, and significant cost efficiencies[3] - CFO highlighted balance between disciplined cost control and strategic investment, strong free cash flow generation, and $137 million returned to shareholders ($92 million in dividends, $45 million in share repurchases)[3] Business and Programming Highlights SiriusXM enhanced content with a new Stephen A. Smith agreement, improved subscriber trends through new acquisition initiatives, and saw nearly 50% podcast revenue growth - Signed a new content agreement with Stephen A. Smith for sports and political/culture programming, reinforcing leadership in sports audio[4] - Subscriber trends improved, supported by new acquisition initiatives (automotive dealer three-year subscription programs, used car owner data enhancements, EV expansion, Podcasts+ package) and continued low churn[5] - Podcast revenue increased by nearly 50% in Q2 2025 compared to 2024, driven by expanded video and social monetization and the addition of high-profile voices like Trevor Noah[6] - Partnered with Narrativ to introduce AI-generated voice replicas in its AdMaker tool and integrated with ad tech provider Innovid to enhance measurement[7] Segment Performance SiriusXM Segment Highlights The SiriusXM segment reported 33 million total subscribers, a 2% revenue decline to $1.6 billion, and a 2% gross profit decrease to $966 million Subscribers and Operating Metrics SiriusXM ended Q2 2025 with approximately 33 million total subscribers, a self-pay subscriber decrease of 68,000, and a low monthly churn rate of 1.5% | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | Total Subscribers | 33 million | 33.26 million | -1% | | Self-pay subscribers (Q2 net change) | (68,000) | (100,000) | +32,000 (improvement) | | Self-pay monthly churn | 1.5% | 1.5% | 0% | | Total trial funnel | 7.6 million | 7.4 million | +0.2 million | Financial Performance SiriusXM segment revenue decreased 2% to $1.6 billion, primarily due to reduced subscriber revenue, while ARPU remained flat at $15.22 and gross margin held at 60% | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :-------- | :-------- | :----------- | | Total Revenue | $1.6 billion | $1.64 billion | -2% | | Subscriber Revenue | $1.499 billion | $1.520 billion | -1% | | ARPU | $15.22 | $15.24 | -0.13% | | Gross Profit | $966 million | $986 million | -2% | | Gross Margin | 60% | 60% | 0% | Pandora and Off-Platform Segment Highlights The Pandora and Off-Platform segment's revenue decreased 3% to $524 million, driven by lower subscriber and advertising revenue, resulting in a 14% gross profit decline to $154 million Subscribers and Operating Metrics Pandora's self-pay subscribers decreased 4% to 5.7 million, monthly active users fell 5% to 42.68 million, and ad-supported listener hours declined 1% to 2.58 billion | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Self-pay subscribers | 5.7 million | 5.95 million | -4% | | Monthly active users (all services) | 42.68 million | 45.13 million | -5% | | Ad supported listener hours (billions) | 2.58 | 2.60 | -1% | Financial Performance Pandora and Off-Platform revenue decreased 3% to $524 million, with subscriber revenue down 6% and advertising revenue down 2%, leading to a 14% drop in gross profit to $154 million | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :-------- | :-------- | :----------- | | Total Revenue | $524 million | $538 million | -3% | | Subscriber Revenue | $130 million | $138 million | -6% | | Advertising Revenue | $394 million | $400 million | -2% | | Gross Profit | $154 million | $180 million | -14% | | Gross Margin | 29% | 33% | -4 percentage points | Additional Financial Information Operating Expenses Subscriber acquisition costs increased 16% to $107 million, with SAC per installation rising 30% to $18.04, while sales and marketing and product and technology costs decreased | Expense Category | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | Subscriber Acquisition Costs | $107 million | $92 million | +16% | | SAC per installation | $18.04 | $13.85 | +30% | | Sales and Marketing | $173 million | $217 million | -20% | | Product and Technology | $48 million | $60 million | -20% | | General and Administrative | $124 million | $101 million | +23% | Cash Flow and Shareholder Returns SiriusXM generated $402 million in free cash flow, a 27% increase, and returned $137 million to shareholders through dividends and share repurchases, maintaining a net debt-to-Adjusted EBITDA ratio of 3.8 times | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :-------- | :-------- | :----------- | | Free Cash Flow | $402 million | $317 million | +27% | | Total Shareholder Returns | $137 million | - | - | | Dividends Paid | $92 million | - | - | | Share Repurchases | $45 million | - | - | | Net Debt-to-Adjusted EBITDA | 3.8x | - | - | Full-Year 2025 Financial Guidance SiriusXM reaffirmed its full-year 2025 guidance, projecting approximately $8.5 billion in total revenue, $2.6 billion in Adjusted EBITDA, and $1.15 billion in free cash flow | Metric | 2025 Guidance (Approx.) | | :---------------- | :---------------------- | | Total Revenue | $8.5 billion | | Adjusted EBITDA | $2.6 billion | | Free Cash Flow | $1.15 billion | Consolidated Financial Statements Consolidated Statements of Operations Total revenue for Q2 2025 was $2,138 million, with net income attributable to Sirius XM Holdings Inc. at $205 million and diluted EPS at $0.57 | (in millions, except per share data) | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :---------------------------------- | :------ | :------ | :------------ | :------------ | | Total revenue | $2,138 | $2,178 | $4,206 | $4,340 | | Income from operations | $365 | $471 | $752 | $880 | | Net income | $205 | $354 | $409 | $595 | | Net income attributable to Sirius XM Holdings Inc. | $205 | $304 | $409 | $503 | | Diluted EPS | $0.57 | $0.74 | $1.16 | $1.37 | | Dividends declared per common share | $0.27 | $0.266 | $0.54 | $0.532 | [Consolidated Balance Sheets